7 May 2024

LEI: 213800B81BFJKWM2JV13

Octopus Renewables Infrastructure Trust plc

("ORIT" or the "Company")

Q1 2024 Factsheet and Net Asset Value

The Board of Octopus Renewables Infrastructure Trust plc announces that the unaudited Net Asset Value ("NAV") of the Company as at 31 March 2024 on a cum-income basis was £587.0 million or 103.90 pence per Ordinary Share (31 December 2023: £599.0 million or 106.04 pence per Ordinary Share).

\* Totals may not sum exactly due to rounding

Power Prices and Green Certificates

ORIT continues to benefit from a high proportion of fixed or contracted revenues and continues to actively manage exposure to short-term variability in power prices. As at 31 March 2024, 84% of ORIT's revenues over a 24-month period were fixed or contracted to 31 March 2026 (31 December 2023: 81% over the 24-month period to 31 December 2025).

Where prices are not fixed under power purchase agreements ("PPAs") or otherwise hedged, the power prices used in the valuations are based on market forward prices in the near term, followed by an equal blend of two independent and widely used market consultants' technology-specific capture price forecasts for each asset.

During the quarter to 31 March 2024, the forecast power prices used in ORIT's portfolio valuations decreased on average leading to a reduction in the portfolio valuation of £5.4 million or -0.96 pence per Ordinary Share. The falls in power price forecasts were mainly over the short-term.

Updates to market forecasts for Green Certificates as well as signing a fixed price Green Certificate contract in the near term for the Lincs Offshore wind farm resulted in a valuation uplift of £0.2 million or 0.04 pence per Ordinary Share.

Post-period, the Crossdykes wind farm in Lanarkshire, Scotland, signed a PPA with Sky UK Limited, who will purchase 69% of the output at a CPI-linked fixed price for a period of 10 years from 1 April 2025. The agreement increases the percentage of ORIT's forecast revenue which is fixed over the two years to 31 March 2026 to 85%. The PPA is also NAV-accretive when compared with the power price assumptions included in the NAV as at 31 March 2024 and would have resulted in an uplift of +0.95 pence per Ordinary Share had signing occurred before the valuation date.

Inflation¹ and FX

ORIT retains a high proportion of inflation-linked cash flows with 45% of revenues over a 10 year-period to 31 March 2034 explicitly linked to inflation. The percentage of forecast revenue which is index-linked increases from 45% to 48% following the signing of the Crossdykes PPA with Sky.

During the quarter, inflation forecasts decreased on average across markets in which ORIT's assets are located. These updates resulted in a net valuation decrease of -£2.3 million, mostly related to reduced RPI forecasts for the Company's UK assets.

During the quarter, sterling appreciated slightly against the Euro, leading to a valuation impact of -£2.6 million (including the impact of currency hedges at the Company level).

The combined impact of inflation and foreign exchange movements was a valuation decrease of -£4.9 million or -0.86 pence per Ordinary Share.

Dividend²

The interim dividend (£8.2 million or 1.45 pence per Ordinary Share) in respect of Q4 2023 was paid in the quarter, taking the total dividend for the financial year from 1 January 2023 to 31 December 2023 ("2023 Dividend") to 5.79 pence per ordinary share, meeting the Company's stated target. The 2023 Dividend was fully covered by cashflows arising from the Company's operating assets.

In line with the Company's progressive dividend policy, in January 2024 the Board announced an increase in the target dividend to 6.02p per ordinary share for the financial year from 1 January 2024 to 31 December 2024 ("FY 2024").

This increase of 4.0% over the 2023 Dividend is in line with the increase to the Consumer Price Index (CPI) for the 12 months to 31 December 2023, and marks the third consecutive year the Company has increased its dividend target in line with inflation. The FY 2024 dividend target is expected to be fully covered by cashflows generated from the Company's operating portfolios.

Other movements

An increase of +£6.2 million or +1.09 pence per Ordinary Share was recorded from other valuation movements. +£12.2 million of this movement reflects the net present value of future cashflows being brought forward from 31 December 2023 to 31 March 2024. This was offset by the remaining other amounts of -£6.0 million, which mostly reflects the Company's operating and transaction costs including RCF interest.

Gearing

As at 31 March 2024, ORIT had total gearing (total debt drawn as a % of gross asset value ("GAV"³) of 46.6% (39.1% as at 31 December 2023). The increase in leverage during the quarter is following completion of the acquisition of four out of the five Irish solar sites from Statkraft Ireland.

Notes

1              The unaudited 31 March 2024 valuation includes (i) recent consensus UK inflation forecasts published by HM Treasury in February 2024; and (ii) inflation forecasts for the relevant European countries published by the European Commission in February 2024.

2              The dividend target stated in this announcement is a target only and not a profit forecast. There can be no assurance that this target will be met, or that the Company will make any distributions at all and it should not be taken as an indication of the Company's expected future results. The Company's actual returns will depend upon a number of factors, including but not limited to the Company's net income and level of ongoing charges. Accordingly, potential investors should not place any reliance on this target and should decide for themselves whether or not the target dividend is reasonable or achievable. Investors should note that references in this announcement to "dividends" and "distributions" are intended to cover both dividend income and income which is designated as an interest distribution for UK tax purposes and therefore subject to the interest streaming regime applicable to investment trusts.

3              "Gross Asset Value" means the aggregate of (i) the fair value of the Company's underlying investments (whether or not subsidiaries), valued on an unlevered basis, (ii) the relevant assets and liabilities of the Company (including cash) valued at fair value (other than third party borrowings) to the extent not included in (i) or (ii) above.

Factsheet

The Company's Q1 2024 factsheet has been published today and is available to download at:

https://www.octopusrenewablesinfrastructure.com/all-reports-publications

For further information please contact:

Notes to editors

About Octopus Renewables Infrastructure Trust

Octopus Renewables Infrastructure Trust ("ORIT") is a premium-listed, closed-ended investment company incorporated in England and Wales focused on providing investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of renewable energy assets in Europe and Australia. As an impact fund, ORIT is helping accelerate the transition to net zero by investing in green energy, whilst also contributing to a broader set of UN Sustainable Development Goals through its impact initiatives. ORIT's investment manager is Octopus Energy Generation.  

Further details can be found at www.octopusrenewablesinfrastructure.com 

About Octopus Energy Generation

Octopus Energy Generation is driving the renewable energy agenda by building green power for the future. Its specialist renewable energy fund management team invests in renewable energy assets and broader projects helping the energy transition, across operational, construction and development stages. The team was set up in 2010 based on the belief that investors can play a vital role in accelerating the shift to a future powered by renewable energy. It has a 13-year track record with approximately £6.7 billion of assets under management (AUM) (as of 31 December 2023) across 16 countries and total 3.9GW. These renewable projects generate enough green energy to power 2.4 million homes every year, the equivalent of taking over 1.2 million petrol cars off the road. Octopus Energy Generation is the trading name of Octopus Renewables Limited. 

Further details can be found at www.octopusenergygeneration.com